The Index of Relative Socio-economic Disadvantage(IRSD) is a general socio-economic index that summarises a range of information about the economic and social conditions of people and households within an area. Unlike the other indexes, this index includes only measures of relative disadvantage.

Interpretation of Index Scores (IRSD)

A low score indicates relatively greater disadvantage in general. For example, an area could have a low score if there are (among other things):
- many households with low income, many people with no qualifications, or many people in low skill occupations.

A high score indicates a relative lack of disadvantage in general. For example, an area may have a high score if there are (among other things):
- few households with low incomes, few people with no qualifications, and few people in low skilled occupations.

This index is preferred in situations where the user:- wants to look at disadvantage and lack of disadvantage
- wants a broad measure of disadvantage, rather than a specific measure (such as low income).

An example would be where a user: - wants to ensure an allocation of funds goes to disadvantaged areas.

We do not recommend using this index if the user:- wants to look at both advantage and disadvantage
- is analysing information that has already been included in the index, such as the proportion of households with low income.

The variables that are included in the index can be found below. Each variable has a loading that indicates the correlation of that variable with the index. A negative loading indicates a disadvantaging variable. All variables in this index are indicators of disadvantage. INC_LOW is the strongest indicator of disadvantage.

FINAL VARIABLE LIST

Variable

Description

Loading

ENGLISHPOOR

% of people who do not speak English well

-0.34

NOEDU

% of people aged 15 years and over who have no educational attainment

-0.44

OCC_SERVICE_L

% of employed people classified as low skill Community and Personal Service workers

-0.50

OCC_DRIVERS

% of employed people classified as Machinery Operators and Drivers

-0.52

OVERCROWD

% of occupied private dwellings requiring one or more extra bedrooms

-0.52

SEP_DIVORCED

% of people aged 15 years and over who are separated or divorced

-0.54

NOCAR

% of occupied private dwellings with no cars

-0.56

DISABILITYU70

% of people under the age of 70 who have a long-term health condition or disability and need assistance with core activities

-0.66

ONEPARENT

% of one parent families with dependent offspring only

-0.71

LOWRENT

% of occupied private dwellings paying rent less than $166 per week (excluding $0 per week)

-0.73

UNEMPLOYED

% of people (in the labour force) who are unemployed

-0.74

NOYEAR12ORHIGHER

% of people aged 15 years and over whose highest level of education is Year 11 or lower

-0.75

OCC_LABOUR

% of employed people classified as Labourers

-0.75

NONET

% of occupied private dwellings with no internet connection

-0.81

CHILDJOBLESS

% of families with children under 15 years of age who live with jobless parents

-0.85

INC_LOW

% of people with stated household equivalised income between $1 and $20,799 per year

-0.90

Note - The loadings are closely related to the variable weights used in the construction of the index. For details, please refer to Chapter 4.1 in the Technical Paper.

The table below shows variables that were initially considered for the index, but were subsequently dropped (excluded) due to low loadings (not adding enough value to the final index). For more information, please refer to Chapter 4.3 in the Technical Paper.

EXCLUDED VARIABLES

Variable

Description

DIALUP

% of occupied private dwellings with a dialup internet connection

CERTIFICATE

% of people aged 15 years and over whose highest educational attainment is a certificate III or IV qualification